Flexible budgets and variance analysis
A company has obtained the following information regarding costs and revenue for the past financial year:
Original budget:
| Sales | 10 000 units |
| Production | 12 000 units |
Standard cost per unit:
| £ | |
| Direct materials | 5 |
| Direct labour | 9 |
| Fixed production overheads | 8 |
|
| 22 |
|
| 30 |
Selling price
Actual result:
| Sales | 9750 units |
| Revenue | £325 000 |
| Production | 11 000 units |
| Material cost | £65 000 |
| Labour cost | £ 100 000 |
| Fixed production overheads | £95 000 |
There were no opening stocks.
Required:
(a) Produce a flexed budget statement showing the flexed budget and actual result. Calculate the variances between the actual and flexed figures for the following:
(b) Explain briefly how the sales and materials variances calculated in (a) may have arisen.
part one For this assignment you are to to watch: Shattered Glass Write a two…
Standard Project - WebServers. Instruction attached. Need all requirements, you do not have to make…
Read classmates post and respond with 100 words:The International Categorization of Diseases, Tenth Revision, Clinical…
Most Americans have at least 1 issue that is most important to them. Economic issues…
For this assignment, you are the court intake processor at a federal court where you…
Use a standard outline format to lay out how you are going to write your…